INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION AUGUST 2018 VISHAY TODAY GROWTH DRIVERS TARGETS & PROJECTIONS Q2 RESULTS

2 NOTES ON FORWARD-LOOKING STATEMENTS Comments in this presentation other than statements of historical fact may constitute forward-looking statements. Words such as believe, estimate, will be, will, would, expect, anticipate, plan, project, intend, could, should or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements may vary materially from those anticipated, estimated or projected. Factors that could cause actual results to materially differ are described in our filings with the U.S. Securities and Exchange Commission, including our annual reports on Form 10-K and quarterly reports on Form 10-Q, specifically in the sections titled Management s Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors. The Company undertakes no obligation to update any forward-looking statements. NON-GAAP FINANCIAL MEASURES Management uses measures which are not recognized in accordance with U.S. generally accepted accounting principles ( GAAP ) to evaluate its business, and may refer to such measures in this presentation. These measures are considered non-gaap financial measures under the U.S. Securities and Exchange Commission rules. These non-gaap financial measures are intended to supplement our GAAP measures of performance and liquidity. These non-gaap measures may include: adjusted net earnings, adjusted gross margin, adjusted operating margin, adjusted earnings per share, free cash, cash available to enhance stockholder value, EBITDA, Adjusted EBITDA, EBITDA margin, breakeven point, contribution margin, and various measures and metrics excluding VPG. Adjusted net earnings is net earnings (loss) determined in accordance with GAAP, adjusted for various items that Management believes are not indicative of the intrinsic operating performance of the Company, such as restructuring and severance costs, asset write-downs, impairment of goodwill, and other significant charges or credits that are important to understanding our intrinsic operations. The measurement is used by Management to evaluate our performance, and also is a key performance metric for executive compensation. Reconciling items to arrive at adjusted net earnings are more fully described in the Company s annual report on Form 10-K and its quarterly reports on Forms 10-Q. Adjusted gross margin is gross margin determined in accordance with GAAP (net revenue less costs of products sold and certain other period costs), adjusted to exclude items that Management believes are not indicative of the intrinsic operating performance of the Company, such as losses on purchase commitments and unusual inventory write-downs. It may be expressed in dollars or as a percentage of net revenue. The measurement is used by Management to evaluate the performance of our business segments, as well as the business as a whole. Reconciling items to arrive at adjusted gross margin are also considered in the calculation of adjusted operating margin and adjusted net earnings. Such reconciling items are more fully described in the Company s annual report on Form 10-K and its quarterly reports on Forms 10-Q. Adjusted operating margin is operating income determined in accordance with GAAP, adjusted for items that Management believes are not indicative of the intrinsic operating performance of the Company. It may be expressed in dollars or as a percentage of net revenue. The measurement is used by Management to evaluate our performance. Reconciling items to arrive at adjusted gross margin are also considered in the calculation of adjusted operating margin; and reconciling items to arrive at adjusted operating margin are also considered in the calculation of adjusted net earnings. Such reconciling items are more fully described in the Company s annual report on Form 10-K and its quarterly reports on Forms 10-Q. Adjusted earnings per share is adjusted net earnings divided by the weighted average diluted shares outstanding for a period, adjusted for the effect of reconciling items, if applicable, on the diluted weighted average shares outstanding. For example, some potential common shares which are anti-dilutive to the computation of GAAP earnings per share may be dilutive after considering reconciling items. Free cash is cash generated from operations in excess of our capital expenditure needs and net of proceeds from the sale of assets. Management uses this measure to evaluate our ability to fund acquisitions, repay debt, and otherwise enhance stockholder value through stock buy-backs or dividends. Cash available to enhance stockholder value is free cash less cash paid for acquisitions (including acquisition-related restructuring) and less debt principal payments. While internal growth and targeted acquisitions also enhance stockholder value through the generation of free cash, Management uses this measure to evaluate our ability to fund further enhancements to stockholder value, such as stock buy-backs or dividends. EBITDA is earnings before interest income and expense, provision for income taxes, depreciation expense, and amortization expense. Management believes that EBITDA provides additional information with respect to a company s performance and ability to meet its future capital expenditures and working capital requirements, particularly when evaluating acquisition targets. Adjusted EBITDA is EBITDA adjusted for relevant reconciling items used to calculate adjusted net earnings (described above). Adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay s revolving credit facility. EBITDA Margin is adjusted EBITDA divided by net revenues. Breakeven point represents the quantity of output where total revenues and total operating costs are equal (in other words, where the operating income is zero). Management uses this measurement in evaluating our cost structure. Contribution margin, sometimes referred to as variable margin, is calculated as net revenue less costs that vary with respect to quantity produced (or another output-related driver). It may be expressed in dollars or as a percentage of net revenue. Management uses this measure to determine the amount of profit to be expected for any increase in revenues in excess of the break-even point. Measurements excluding VPG reflect the historical businesses which are still part of Vishay today. The Company spun-off VPG on July 6, While VPG does not qualify as a discontinued operation under GAAP, Management believes that certain evaluations excluding VPG are meaningful, particularly when evaluating growth and other performance metrics. Historical VPG data is reported as a separate operating segment in Vishay s annual report on Form 10-K and its quarterly reports on Forms 10-Q during the periods it was included in Vishay s consolidated financial statements: This discrete data is the basis to calculate any measurements excluding VPG. These measures do not have uniform definitions and accordingly, these measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Such measures should not be viewed as alternatives to GAAP measures of performance or liquidity. However, Management believes such measures are meaningful to an evaluation of our business, as described above. 2

3 DRIVE STOCKHOLDER VALUE Intensified organic growth. Supplemented by targeted acquisitions. Regular cash dividend program. Opportunistic stock buy-backs. Maintaining prudent capital structure. 3

4 VISHAY TODAY Broad and competitive product and technology portfolio: Solution provider and valuable partner for customers. Broad market penetration Wide range of end markets. Balanced geographic manufacturing footprint. Right mix of sales channels. Contribution margin of 45% plus. Reliable generation of free cash. 4

5 BALANCED PRODUCT PORTFOLIO 32% RESISTORS INDUCTORS 11% INFRARED OPTO 24% DIODES 15% CAPACITORS 18% MOSFETs PASSIVES 47% PASSIVES 53% SEMICONDUCTORS VISHAY REVENUES

6 BROADEST LINE OF DISCRETE SEMICONDUCTORS AND PASSIVE COMPONENTS SEMICONDUCTORS PASSIVE COMPONENTS DIODES MOSFETs OPTO CAPACITORS RESISTORS MAGNETICS Infrared Power, Diodes, Rectifiers MOSFETs Optocouplers Ceramic Power Resistors Sensors Components Aluminum, Film, SMD Variable, Magnetic Components Tantalum LEDs Film, VISHAY AVX Bourns Broadcom Diodes Inc. Infineon KEMET KOA Murata Nichicon Nexperia ON Semi Panasonic Rohm Sharp ST Micro TDK/EPCOS Toshiba Yageo Source: Company estimates = Major Position = Minor Position 6

7 BROAD MARKET PENETRATION VISHAY TODAY 28% AUTOMOTIVE 36% INDUSTRIAL 6% CONSUMER 8% COMPUTING 7% TELECOM 4% MEDICAL 6% POWER SUPPLIES 5% MILITARY/AERO 42% ASIA 23% AMERICAS END MARKETS 36% OEM 57% DISTRIBUTION 35% EUROPE 7% EMS VISHAY REVENUES 2017 GEOGRAPHY SALES CHANNELS 7

8 WELL-POSITIONED TO CAPITALIZE ON GROWTH MARKETS VISHAY TODAY Revenue split (by end market) Medical Military/Aero Consumer Telecom Power supplies Computing 3% Medical 4% 6% Military/Aero 5% 9% Consumer 6% Telecom 7% 12% Power supplies 6% 10% Computing 8% 21% Automotive 28% revenue CAGR Auto: 10% Industrial: 8% Automotive 15% Industrial 24% Industrial 36%

9 BROAD CUSTOMER BASE NO SINGLE OEM CUSTOMER REPRESENTS OVER 7% OF SALES OEM EMS DISTRIBUTION 9

10 VISHAY TODAY REVENUE AND GAAP OPERATING MARGIN 1 REVENUE MILLIONS $4,500 OM MILLIONS $450 $4,000 $400 $3,500 $350 $3,000 $300 $2,500 $250 $2,000 $200 $1,500 $150 $1,000 $100 $500 $50 $ OPERATING MARGIN REVENUE -1, ) Excl. VPG spin-off in $0 10

11 VISHAY TODAY REVENUE AND ADJUSTED OPERATING MARGIN 1 REVENUE MILLIONS $4,500 OM MILLIONS $450 $4,000 $400 $3,500 $350 $3,000 $300 $2,500 $250 $2,000 $200 $1,500 $150 $1,000 $100 $500 $50 $ OPERATING MARGIN REVENUE 1) Excl. VPG spin-off in $0 11

12 VISHAY TODAY RECONCILIATION OF GAAP TO ADJUSTED 1 in millions USD Reconciling items affecting gross margin: Loss on purchase commitments, Ta writedowns 6 16 (1) Product quality claims 3 Reconciling items affecting operating margin: Restructuring and severance costs Asset write-downs U.S. pension settlement charges Executive compensation charges (2) 6 Settlement agreement gain (28) Executive employment agreement charge 58 Impairment of goodwill and indefinite-lived intangibles ,629 Terminated tender offer expenses 4 Contract termination charge 19 Siliconix transaction-related charges 4 Purchased in-process R&D 10 2 Environmental remediation 4 Gain on sale of building (12) (5) (3) 1) Excl. VPG spin-off in

13 VISHAY TODAY CONTRIBUTIVE MARGIN 1 % 60 % ) Excl. VPG spin-off in

14 VISHAY TODAY STRONG GENERATION OF FREE CASH $450 $450 $400 $400 $350 $350 $300 $300 $250 $250 $200 $200 $150 $150 $100 $100 $50 $50 $ PROCEEDS FROM SALE OF PROPERTY AND EQUIPMENT CASH FLOWS FROM OPERATIONS LESS CAPITAL EXPENDITURES $0 14

15 VISHAY TODAY ENHANCING STOCKHOLDER VALUE: $150 MILLION STOCK BUY BACK PROGRAM $150 million stock repurchase program. Announced August 2, 2017; authorized until June 1, In 2017 spent $39.9 million to repurchase 2.3 million shares. In 2016 spent $23.2 million to repurchase 1.8 million shares. From spent $575 million to repurchase 44.3 million shares, financed with 2.25% coupon, 30-year convertibles. 15

16 ENHANCING STOCKHOLDER VALUE: ANNUALIZED CASH DIVIDEND $0.34 VISHAY TODAY Initiation of Company s quarterly cash dividend program: Increased quarterly dividend by 26% to $ Q Increased quarterly dividend by 8% to $ Q Increased quarterly dividend by 4% to $ Q Initiated quarterly cash dividend of $ in Q Future dividends are subject to Board approval. 16

17 GROWTH DRIVERS Vishay is well positioned to participate in the markets expected to show solid growth over the next years. Connectivity Mobility Sustainability 17

18 GROWTH DRIVERS CONNECTIVITY INTERNET OF THINGS BLE BEACONS Ultra low power Smallest dimensions Infinite life ENYCAP TM hybrid EDLC Chip antennas IHLP, IHHP for boost circuits Smart load switches 220EDLC ENYCAP TM radial high pulse MOSFETs: miniature packages Low profile, small size, high CV tantalum and polymer capacitors 18

19 CONNECTIVITY SET-TOP BOXES GROWTH DRIVERS Low profile High efficiency Small solution size High power density µicrobuck TM regulator ICs PowerPAK MOSFETs HI Q HIFREQ MLCCs for RF circuit tuning TMBS diodes BUS-port protection arrays IHLP inductors IR receivers 19

20 MOBILITY CHARGE STATION OFF-BOARD GROWTH DRIVERS High efficiency Excellent stability and overload performance High operating temperature Ultra fast diodes FRED Pt Gen 4 Snap-in electrolytic capacitors Safety X cap & Y cap Power Metal Strip current sense resistors Film capacitors for snubber High voltage MOSFETs Diodes module 20

21 High efficiency Small size and weight Fast charging time MOBILITY ON-BOARD BATTERY CHARGER GROWTH DRIVERS Interference film capacitors class X2 / Y2 Customized MOSFET modules Leaded ceramic capacitors class Y2 Pulse-proof thick film chip resistors MKP DC-Link film capacitors Customized power magnetic modules 600 V / 1200 V Ultrafast rectifiers Automotive low voltage MOSFETs n & p channel Thin film SMD chips and MELF Power Metal Strip current sense resistors 21

22 SUSTAINABILITY ON-PANEL POWER CONVERSION: MICRO INVERTERS Long life, high reliability Compact size Optimized efficiency High power density GROWTH DRIVERS Optocouplers and solid-state relays Low ESR tantalum capacitors IHLP inductors MLCC capacitors Power Metal Strip current sense resistors Film capacitors for safety, snubber, and buffer applications TMBS Schottky and Hyperfast diodes MOSFETs: PowerPAK 1212, SO8, 8x8 E series high voltage superjunction 22

23 GROWTH DRIVERS SUSTAINABILITY POWER TRANSMISSION AND DISTRIBUTION High voltage capability Long life Custom design MELF resistors for high voltage detection Optocouplers and solid-state relays High power resistors for braking, dumping, and grounding Phase-leg thyristors, SCR / IGBT modules Power capacitors 23

24 TARGETS AND PROJECTIONS

25 GROWTH PLAN GOALS Increase EPS Organic growth. Acquisitions. Focus on maintaining prudent financial structure. Concrete Growth Plan built business by business from the bottom up. 25

26 GROWTH PLAN DRIVE ORGANIC GROWTH Strong organic growth strategy Focused development of new products & technologies Ensure product availability for key product lines during demand spikes Asia Growth Plan: Improve market penetration mainly in industrial and auto segments 26

27 GROWTH PLAN 1. FOCUSED DEVELOPMENT OF NEW PRODUCTS Focus areas of new product development: MOSFETs: continued product rejuvenation in all voltage ranges, extension of Automotive offerings and new packages. DrMOS with additional features and further integration steps. New low profile packaged diodes, new load dump TVS products. Further diversification in custom magnetics, power inductors and planar transformers. Extended ranges of shunt resistors, precision and power resistors. New ranges of optical sensors incl. in-house designed IC s. Low ESR and high performance polymer tantalum capacitors. Customized DC-link and power film capacitors. Extension of Double Layer (EDLC) capacitor range. 27

28 2. ASIA GROWTH PLAN: IMPROVE MARKET PENETRATION IN INDUSTRIAL AND AUTO Leverage in Asia Vishay s strength in automotive and industrial, in addition to the traditional Asian focus markets, computing and consumer: Transportation automotive (local customers), trains. Energy infrastructure, wind and solar, oil exploration. Equipment and instrumentation. GROWTH PLAN By a strong technical sales force in Asia with focus on China. 18% CAGR for Automotive in Asia

29 3. ENSURE PRODUCT AVAILABILITY FOR KEY PRODUCT LINES GROWTH PLAN Get ahead of demand curve for Vishay s strategic growth products to ensure sufficient capacity during demand spikes. Diodes in smaller and lower profile packages. Load dump TVS diodes, surface mount rectifiers. High-current power inductors. SMD couplers and optoelectronic sensors. Shunt, and other specialty resistors. Tantalum capacitors in face down style, polymer technology. 29

30 GROWTH PLAN ASSUMPTIONS Stable economic environment. ASP decline per year for Vishay s products: Passives 0% - 3% Semis 3% - 5.5%, product line specific. Inflation rates for salaries, wages and overhead: 1.5% - 9.0%, location specific. Stable FX rates. 30

31 GROWTH PLAN OPERATIONAL PARAMETERS Contributive margin at historical levels of 45% + As consequence of price decline, cost reduction and mix development by specific product line. Proven track record for last 10 + years of 45% + margin. Fixed cost increases per year: Selling, R&D and engineering costs 3% G&A and manufacturing fixed costs 2% Depreciation & Amortization - 1.2% 31

32 SUPPLEMENT ORGANIC GROWTH WITH ACQUISITIONS GROWTH PLAN Three types of small to mid-size acquisitions targeted: Synergetic. Specialty. Closing technological gap. Cash payback incl. restructuring of 8 years. Accretive to earnings in less than 12 months. 32

33 IN SUMMARY Grow at least with the market with CAGR of revenues of between 3% and 6%. Grow net income with CAGR of 10% to 20%. Maintain prudent capital structure. Continued strong generation of cash available to enhance stockholder value. 33

34 FINANCIAL RESULTS Q2 2018

35 Q2 FINANCIAL INFORMATION HIGHLIGHTS Q Revenues Q2: $761 million. Gross margin Q2: 29.9%. Operating margin Q2: 16.2%. EPS Q2: $0.65; adjusted EPS: $0.54. Guidance Q3: Revenues $755 to $795 million and gross margins of 29.0%-30.0%, based on Q2 x-rates. Repatriated $274 million net of related foreign taxes. 28% normalized effective tax rate expected for 2018 (31% in Q1 2018). Distribution: Inventory turns worldwide of 3.7. Point of Sales worldwide for Q increased by 14% year over year. 35

36 Q2 FINANCIAL INFORMATION $600 CONVERTIBLE NOTES DUE 2025 ISSUED JUNE 2018 $600 million principal amount of 2.25% converts, due All net proceeds used to repurchase $220 million principal amount of 2040 and of $69 million principal amount of 2042 converts. as of March 31, 2018 Convertible Debt Instruments Principal Amount in million Annual Cash Interest¹ in million Conversion Price Convertible Debentures,due 2040 $275 $6 $12.91 Convertible Debentures, due 2041 $150 $3 $17.69 Convertible Debentures, due 2042 $150 $3 $10.98 Convertible Debt Instruments, due 2040 to 2042 Average Conversion Price $575 $13 $13.65 as of June 30, 2018 Convertible Notes, due 2025 $600 $14 $31.49 Convertible Debentures, due 2040 $55 $1 $12.86 Convertible Debentures, due 2041 $150 $3 $17.63 Convertible Debentures, due 2042 $81 $2 $10.94 Convertible Debt Instruments, due 2025 to 2042 $886 $20 $ ) Annual cash interest rate for all converts 2.25% Lower tax rate, increased average conversion price (= lower sharecount for EPS), higher interest. 36

37 Q2 FINANCIAL INFORMATION NORMALIZED EFFECTIVE TAX RATE 28% Following the US tax reform, Vishay s normalized effective tax rate was expected in Q1 to be 31% for the year. Due to the unusual tax benefit related to the settlement of some of the converts, US GAAP tax rate was -6% for Q2 and 12.5% YTD. The normalized effective tax rate excluding this and other unusual tax items was approximately 28% YTD, resulting for Q2 in a rate of 25%. The normalized effective rate for the full year is expected to be 28%. Our consolidated effective tax rate is based on an assumed level and mix of income among our various taxing jurisdictions. A shift in income could result in significantly different results. 37

38 Q2 FINANCIAL INFORMATION CASH REPATRIATION AND RELATED FOREIGN TAX Plan to repatriate approximately $1.2 billion of cash with foreign withholding and other taxes of approximately $225 million. Q received $274 million in the US Used to pay down revolver, intercompany debts and US transition tax. In 2018 expect to pay $164 million in related foreign taxes impacting cash flow from operations. in million Gross amount repatriated Foreign withholding & other taxes¹ Net cash to US¹ $1,200 $225 $975 Q $366 $92 $274 Q $522 $72 $ and later $312 $61 $251 1) All future amounts stated are approximations, subject to exchange rate changes. 38

39 Q2 FINANCIAL INFORMATION CASH FLOW IMPACTED BY CASH REPATRIATION in millions Q TTM Q Year 2017 Depreciation $37 $151 $149 Amortization $3 $13 $14 U.S transition tax ($14) ($14) Repatriation taxes ($92) ($92) Cash from operations ($9) $279 $369 CapEx $48 $198 $170 Free Cash * ($49) $89 $200 * Cash flows from operations less capital expenditures plus proceeds from sale of property and equipment BOTH Q2 AND TTM Q2 INCLUDE ABOUT $106 MILLION CASH TAXES RELATED TO CASH REPATRIATION AND US TAX REFORM. 39

40 Q2 FINANCIAL INFORMATION SHARECOUNT FOR EPS CALCULATION in million Total shares outstanding 144 Related to RSUs etc. < 1 The three converts issued become dilutive once the average stock price is higher than the lowest conversion price: For an average stock price below $10.94 there is no dilution due to the converts. The table to the right summarizes the approximate number of shares for diluted EPS calculation. See Item 7.01 of current report on Form 8-K filed with the Securities and Exchange Commission on August 7, 2018 for additional important information about the parameters which impact the computation of shares expected to be used in the diluted EPS computation. Average Stock Price Projected Diluted Shares $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

41 SALES SPLIT Q Q2 FINANCIAL INFORMATION 28% AUTOMOTIVE 39% INDUSTRIAL 5% CONSUMER 7% COMPUTING 6% TELECOM 4% MEDICAL 6% POWER SUPPLIES 5% MILITARY/AERO 40% ASIA END MARKETS 24% AMERICAS 35% OEM 58% DISTRIBUTION 7% EMS 36% EUROPE GEOGRAPHY SALES CHANNELS 41

42 Q2 FINANCIAL INFORMATION APPENDIX 42

43 Q2 FINANCIAL INFORMATION QUARTERLY FINANCIAL RESULTS in millions, except per share amounts Q Q Q2 2017* Net revenues $761 $717 $643 Gross profit $227 $205 $ % 28.6% 27.0% Operating income (loss) $123 $104 $ % 14.5% 13.2% Net earnings (loss) attributable to Vishay stockholders $103 $62 $56 Weighted average shares outstanding for EPS EPS $0.65 $0.39 $0.36 EBITDA $144 $138 $ % 19.3% 18.9% *Recast for the retrospective adoption of ASUs and

44 Q2 FINANCIAL INFORMATION ADJUSTED QUARTERLY FINANCIAL RESULTS in millions, except per share amounts Q Q Q2 2017* Net revenues $761 $717 $643 Gross profit $227 $205 $ % 28.6% 27.0% Adjusted operating income $123 $104 $ % 14.5% 13.3% Adjusted net earnings attributable to Vishay stockholders $86 $64 $55 Weighted average shares outstanding for adjusted EPS Adjusted EPS $0.54 $0.40 $0.36 Adjusted EBITDA $161 $138 $ % 19.3% 19.0% *Recast for the retrospective adoption of ASUs and

45 RECONCILIATION OF GAAP TO ADJUSTED Q2 FINANCIAL INFORMATION in millions Q Q Q2 2017* GAAP NET EARNINGS (loss) attributable to Vishay stockholders $103 $62 $56 Reconciling items affecting operating income Restructuring and severance costs - - $1 Reconciling items affecting other income (expense) Gain on early extinguishment of debt Reconciling items affecting tax expense (benefit) Enactment of TCJA Effects of cash repatriation program Change in deferred taxes due to early extinguishment of debt Tax effects of pre-tax items above 12 ($9) ($34) ($4) $ ($1) ADJUSTED NET EARNINGS attributable to Vishay stockholders $86 $64 $55 *Recast for the retrospective adoption of ASUs and

46 Q2 FINANCIAL INFORMATION LONG TERM DEBT as of June 30, 2018 in millions Outstanding Debt Comments Interest Long term incl. current portion $680 Revolving Debt $96 Available through December 10, 2020 LIBOR plus 1.50% Convertible Notes, due 2025 Convertible Debentures, due $489 $114 $600 million principal amount; debt discount of $111 million amortized to income statement as additional non-cash interest $286 million principal amount; debt discount of $173 million amortized to income statement as additional non-cash interest Cash coupon 2.25% of principal or $14 million annually; GAAP interest expense (incl. amortization of discount) based on 5.5% of net carrying amount Cash coupon 2.25% of principal or $6 million annually; GAAP interest expense (incl. amortization of discount) based on 8.00%, 8.375% resp. 7.50% of net carrying amount Deferred Financing Costs ($19) 46

47 Q2 FINANCIAL INFORMATION BOOK-TO-BILL DETAIL Q Q Q Q Q Book-to-bill VISHAY Book-to-bill distribution Book-to-bill OEMs Book-to-bill semiconductors Book-to-bill passive components Book-to-bill Americas Book-to-bill Asia Book-to-bill Europe

48 Q2 FINANCIAL INFORMATION OPERATIONAL METRICS Q Q Q4 2017* Q3 2017* Q2 2017* Change in ASP vs. prior year total Vishay 0.7 (0.9) (2.3) (2.4) (2.8) Change in ASP vs. prior year semis 1.0 (0.8) (2.7) (2.7) (3.4) Change in ASP vs. prior year passives 0.3 (0.9) (1.9) (2.1) (2.1) FX effect on revenues vs. previous quarter ($7) $10 $1 $13 $6 Backlog at quarter end $1,595 $1,499 $1,320 $1,122 $1,034 Backlog in months *Recast for the retrospective adoption of ASUs and

49 Q2 FINANCIAL INFORMATION VISHAY REVENUES AND GROSS MARGIN % QUARTERLY excl. Spin-Off Vishay Precision Group in 2010 $ in millions % Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q SALES GM % 49

50 Q2 FINANCIAL INFORMATION VISHAY REVENUES QUARTERLY BY PRODUCT SEGMENT $ in millions $ in millions Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q MOSFETs Diodes Opto Resistors/Inductors Capacitors 50

51 Q2 FINANCIAL INFORMATION VISHAY REVENUES YEARLY BY PRODUCT SEGMENT $ in millions $ in millions MOSFETs Diodes Opto Resistors/Inductors Capacitors 51

52 Q2 FINANCIAL INFORMATION VISHAY GROSS MARGINS QUARTERLY BY PRODUCT SEGMENT % % Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q MOSFETs Diodes Opto Resistors/Inductors Capacitors 52

53 Q2 FINANCIAL INFORMATION VISHAY GROSS MARGINS YEARLY BY PRODUCT SEGMENT % % MOSFETs Diodes Opto Resistors/Inductors Capacitors 53